Information on FCA guidance on professional indemnity insurance - February 2026

Authorised firms are required to ensure they maintain compliant PII cover at all times, including those with MiFID permissions (if they also perform relevant insurance or mortgage mediation), and are required to maintain compliant PII cover, as set out in MIPRU. 3.2. https://handbook.fca.org.uk/handbook/mipru3/mipru3s2?timeline=true[1]

Professional Indemnity Insurance (PII) cover for regulated firms is collected via regulatory returns, the Retail Mediation Activities Return (RMAR), specifically within the RMA-E section regarding PII self-certification. 

The FCA uses this information to ensure firms hold adequate cover in compliance with rules, such as those in the Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries (MIPRU 3).

https://handbook.fca.org.uk/handbook/mipru3/mipru3s2?timeline=true[1]

Policy details, including compliance with requirements, must be reported on the Retail Mediation Activities Return (RMAR). Principal firms with Appointed Representatives (ARs) must hold compliant PII to cover the activities of their current and former ARs. Please note that some MiFID investment firms might not fall under the RMAR reporting requirement if they do not conduct retail insurance mediation.

Categories of PII Information Collected in the Returns (RMA-E).

Information we collect about firms’ PII policies generally includes:

• Policy Details: Insurer name, start date, and end date of the policy.
• Coverage Scope: Confirmation that the policy covers regulated activities (mortgage, insurance, or retail investment advising/arranging).
• Retroactive Cover: The date from which the policy covers claims, specifically whether it covers all business conducted since the firm was authorized.
• Policy Limits: The maximum amount of indemnity per year, ensuring it meets the minimums set by the FCA. Please refer to MIPRU 3.2 https://handbook.fca.org.uk/handbook/mipru3/mipru3s2?timeline=true[2]
• Excess Amount: The amount of the self-insured excess and, if this excess is higher than standard, the amount of additional capital held to cover it.
• Policy Exclusions: Details of any business lines or activities that are not covered by the policy, which may require the firm to hold additional capital.
• Annual Income/Premium:  The annual premium cost and the annual income used to calculate required coverage levels.
• Appointed Representatives:  Confirmation of cover for the activities of appointed representatives (ARs).

There is no such specific rule, as a firm could pay an Ombudsman award itself, but this is covered by MIPRU 3.2.4 (1) and (6) which state that the contract for PII must incorporate terms which make provision for.

• MIPRU 3.2.4 (1) - cover in respect of claims for which a firm may be liable as a result of the conduct of itself, its employees and its appointed representatives (acting within the scope of their appointment), which would include Ombudsman’s awards. And
• MIPRU 3.2.4 (6) - cover in respect of Ombudsman awards made against the firm. https://handbook.fca.org.uk/handbook/mipru3/mipru3s2?timeline=true[3]